The CEO of VanEck, a prominent financial institution, has reportedly stated that the U.S. Securities and Exchange Commission (SEC) is likely to reject proposals for Ethereum (ETH) exchange-traded funds (ETFs).
While many financial institutions had their proposals for Bitcoin (BTC) ETFs approved earlier this year, Jan van Eck, the CEO of VanEck, expressed his belief in an interview with CNBC that the regulatory agency will not give the green light to ETH ETFs.
“We were actually the first to submit an application for Ethereum in the U.S., and both Cathy Wood, the CEO of Ark Invest, and I are probably going to be rejected in May… The regulatory process involves the regulators providing comments on your application, and that happened for weeks and weeks before the Bitcoin ETFs were approved. Right now, it seems that Ethereum is facing some obstacles.”
The SEC approved BTC ETFs in January after years of rejecting them, following a court order to reconsider the applications. ETFs provide traders with exposure to an asset without requiring them to actually purchase it.
In March, the regulatory agency announced that it needed more time to consider the possibility of an ETF based on Ethereum, and therefore would delay its decision by 60 days until May.
However, some crypto companies, such as leading US-based crypto exchange Coinbase and blockchain software provider Consensys, are urging the SEC to approve ETH ETFs. They argue that Ethereum’s cybersecurity and resilience to fraud are even stronger than Bitcoin’s.
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